Roughly one in three office buildings in the largest U.S. cities are well suited to be converted to multifamily residential properties, according to a study by global real estate firm Avison Young.
Some 6,206 buildings across 10 U.S. cities present viable opportunities for conversion to residential use. These buildings were built before 1990 with floor sizes below 15,000 sf, making them good candidates for conversion. Such properties are better suited for converting to apartments or condominiums than buildings with larger floor plans that are harder to divide into living spaces.
New York City, the largest U.S. office market at 975 million sf, has the most older buildings available at 1,698, according to Avison Young. Los Angeles is second with 1,212 and Chicago comes in third with 1,030.
The volume of conversions has risen considerably since 2016. A CBRE report last December showed 85 conversions underway this year, double those completed last year. In 2016, the there were 24 conversions.
Converting old office buildings to other uses has gained momentum since the Covid pandemic struck. Office utilization is at an average of 50% across major cities, according to a recent study by security technology firm Kastle Systems.
If that level of use persists, there will be more pressure to convert older offices, which generally operate less sustainably than new properties built to more stringent energy codes, for other purposes.
Related Stories
Multifamily Housing | Nov 8, 2017
No place like home: LA’s The Six provides permanent supportive housing for veterans
The 52-unit development gives hope and dignity to homeless or disabled veterans and others in need.
Mixed-Use | Nov 1, 2017
18-story residential tower breaks ground near Temple University
The tower will provide apartment units for students and young professionals.
Multifamily Housing | Oct 30, 2017
Multifamily ventilation: Help buildings breathe
What's the right set of "lungs" for your building?
Multifamily Housing | Oct 30, 2017
First two affordable family apartment communities open in Irvine’s master planned Great Park Neighborhoods community
The buildings offer a total of 166 apartments.
Multifamily Housing | Oct 29, 2017
Multifamily visionaries: The Beach Company’s family ties
Spanning four generations, The Beach Company continues to expand its development footprint across the Southeast.
Greenbuild Report | Oct 19, 2017
Can 'living well' sell?
As the competition for renters and buyers heats up, multifamily developers look to health and wellness for an edge.
Multifamily Housing | Oct 19, 2017
Enlightened conversion: A church becomes condos in D.C.
Once there were 857 churches in the District of Columbia. Now there are 856. One of them became an award-winning condominium complex.
University Buildings | Oct 13, 2017
The University of Oklahoma receives its first residential colleges
The residential communities were designed by KWK Architects and combine living and learning amenities.
Multifamily Housing | Oct 11, 2017
A 267-unit multifamily community is under construction in Summerville, S.C.
Summer Wind will be about half an hour outside of Charleston, S.C., in the rapidly expanding Summerville submarket.
Multifamily Housing | Oct 9, 2017
6 new products for the multifamily construction market
Bamboo wall panels, an adaptable prep sink, and a two-tiered bike parking system are among the product innovations geared for multifamily buildings.